Question: Explain different examples of Arbitrage that could be applicable to your chosen market (examples: credit arbitrage, triangular arbitrage, covered Interest arbitrage, locational arbitrage). For the

Explain different examples of Arbitrage that could be applicable to your chosen market (examples: credit arbitrage, triangular arbitrage, covered Interest arbitrage, locational arbitrage). For the sake of consistency 4 is a good benchmark number.

For each type determine the pros and the cons (limitations)

Please use references to support your points.

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Arbitrage refers to the practice of taking advantage of price discrepancies in different markets to make a profit with no or minimal risk Here are four examples of arbitrage commonly observed in finan... View full answer

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